Microsoft (NASDAQ:MSFT) posts better-than-expected sales in Q3 CY2026

Microsoft (NASDAQ:MSFT) posts better-than-expected sales in Q3 CY2026

By Jabin Bastian
Publication Date: 2026-10-28 21:21:00

Technology giant Microsoft (NASDAQ:MSFT) reported calendar Q3 2026 (fiscal Q1 2027) results topping the market’s revenue expectations , with revenue up 18.8% year on year to $92.28 billion. Its non-GAAP profit of $4.92 per share was 4.3% above analysts’ consensus estimates.

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Microsoft (MSFT) Q3 CY2026 highlights:

  • Revenue $92.28 billion vs S&P analysts’ consensus estimates of $90.64 billion (1.8% beat)

  • Azure cloud revenue grew 48% year over year (beat)

  • EPS (GAAP) $4.92 vs analysts’ consensus estimates of $4.72 (4.3% beat)

  • Gross margin 67.8%, down from 69% in the same quarter last year

  • Operating margin 49.8%, in line with the same quarter last year

  • Free cash flow margin 20.2%, down from 33% in the same quarter last year

  • Market capitalization $3.95 trillion

Revenue growth

Microsoft shows that fast growth and large scale can…